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Railroad Deregulation and Consumer Welfare

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Author Info
Ellig, Jerry
Abstract

Railroad deregulation under the Staggers Act of 1980 generated rate reductions, service enhancements, and other improvements in economic welfare. These benefits appear to be widely shared. There is a low likelihood that some captive shippers pay rates that exceed the rates they would have paid under regulation, some evidence that some captive shippers have paid rates that regulators would judge "unreasonable," and strong evidence that captive shippers pay higher rates than non-captive shippers. The source of deregulation's benefits is as noteworthy as their size and distribution. The principal benefits of railroad deregulation stem from cost reduction, not just a closer alignment of prices with pre-deregulation cost levels. Copyright 2002 by Kluwer Academic Publishers

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Publisher Info
Article provided by Springer in its journal Journal of Regulatory Economics.

Volume (Year): 21 (2002)
Issue (Month): 2 (March)
Pages: 143-67
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Handle: RePEc:kap:regeco:v:21:y:2002:i:2:p:143-67

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  1. Kristen Monaco & Taggert J. Brooks & John Bitzan, 2006. "A time series analysis of wages in deregulated industries: A study of motor carriage and rail," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 105-118, May. [Downloadable!] (restricted)
  2. Denis A. Breen, 2004. "The Union Pacific/Southern Pacific Rail Merger: A Retrospective on Merger Benefits," Review of Network Economics, Concept Economics, vol. 3(3), pages 283-322, September. [Downloadable!]
  3. Marc Ivaldi & Gerard Mccullough, 2008. "Subadditivity Tests for Network Separation with an Application to U.S. Railroads," Review of Network Economics, Concept Economics, vol. 7(1), pages 159-171, March. [Downloadable!]
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